AirAsia granted final Federal Court bid to challenge ex-pilot payout

AirAsia has been granted leave by the Federal Court to challenge a ruling that deemed the retrenchment of former co-pilot How Zheng Hong unlawful, potentially allowing the airline to overturn a RM147,400 payout. The decision represents the airline's final avenue to contest the lower court's determination in the long-running employment dispute.

The case centres on whether the airline's decision to retrench How was carried out in accordance with the law and employment regulations. The lower court had previously ruled against AirAsia, finding the retrenchment process deficient and awarding compensation to the former pilot.

By securing Federal Court leave, AirAsia can now mount a formal appeal challenging the earlier judgment. The outcome of this final legal battle will determine whether the airline must proceed with the RM147,400 payout or whether the lower court's decision will be overturned.

The case underscores ongoing disputes between major employers and workers over retrenchment procedures in Malaysia. For How, the Federal Court proceedings represent the culmination of a legal battle spanning years, while AirAsia faces potential financial and reputational implications depending on the court's determination.